Shree Saguru Charitable Trust, RAJKOT-GUJARAT V. The Commissioner of Income Tax-III, RAJKOT-GUJARAT

ITA 488/RJT/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 2361 (ITAT-RAJKOT)
• Duration Of Justice: 1 year(s) 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 11-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M J RANPURA YOGESH PANDEY
• Keywords: Charitable institution
• Section: 12A; 12AA

Judgement Text

ITA NO . 488 / RJT/201 4 PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT (CONDUCTED THROUGH E - COURT AT AHMEDABAD) [CORAM: PRAMOD KUMAR AM AND KUL BHARAT JM ] ITA NO. 488 /RJT/201 4 SHREE SADGURU CHARITABLE TRUST .......... ...... ... .. . ..... APP ELLANT KOTHARIYA B Y - PASS RING ROAD, TIRUPATI BALAJI PARK - 2, RAJKOT . [PAN: A AMTS 6558 H ] VS. COMMISSIONER OF INCOME TAX . .......... .... ...... ..................RESPONDENT RAJKOT. APPEARANCES BY: M.J. RANPURA F OR THE APPELLANT YOGESH PANDEY FOR THE RESPONDENT DATE O F CONCLUDING THE HEARING : DECEMBER 31 ST , 201 5 DATE OF PRONOUNCING THE ORDER : JANUARY 19 TH , 2016 O R D E R PER PRAMOD KUMAR AM: 1. BY W A Y OF THIS A PPEAL, THE ASSESSEE APPELLANT HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 25.06.2014 , PASSED BY THE LD . CIT, RAJKOT REJECTING GRANT OF REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961 ( THE ACT HEREINAFTER). 2. LD. COUNSEL FOR THE ASSESSEE INVITES OUR ATTENTION TO THE FACTS THAT THE REGISTRATION HAS BEEN DECLINED ON THE SHORT GROUND THAT THE ASSESSEE COULD NOT INCLUDE THE PROVISIONS IN THE RELATED TRUST DEED TO THE EFFECT THAT UPON THE DISSOLUTION, IF ANY PROPERTY REMAINS AFTER SATISFACTION OF ITS DEBTS AND LIABILITIES, THE SAME SHALL BE TRANSFERRED TO ANOTHER TRUST HAVING SIMILAR OBJECTS. H E FURTHER POINTS OUT THAT THIS ISSUE IS NOW COVERED IN FAVOUR OF THE ASSESSEE BY THE DIVISION BENCH ORDER OF TH IS TRIBUNAL IN ITA NO . 488 / RJT/201 4 PAGE 2 OF 4 THE CASE OF JAI GIRNARI MANAV S E V A , GAU SEVA ASHRAM TRUST - ITA NO.529/RJT/2015 - ORDER DATED 6 TH OCTOBER, 2015 - WHEREIN WHILE CONSIDERING APPLICATION U/S. 12A A OF THE ACT, REFERRING TO THE CASE OF SHREE CHARGAM DASHA PORW AD MAHAMANDAL VS. DIRECTOR OF INCOME TAX (EXEMPTION) IN ITA NOS.337 & 338/AHD/2013, ORDER DATED 08.05.2013 , TRIBUNAL HELD THAT THE APPELLANT IS CHARITABLE TRUST, IN THE EVENT OF DISSOLUTION OF T HE TRUST THE BOMBAY PUBLIC TRUST WILL BE APPLICABLE AND THE NET ASSE T S/INCOME WOULD OBVIOUSLY BE TAKEN OVER BY CHARITY COMMISSIONER AND THE REJECTION OF REGISTRATION ON THIS GROUND WAS HELD NOT ON A SOUND FOOTING. 3. LEAR NED DEPARTMENTAL REPRESENTATIVE DID NOT OPPOSE TO THE ABOVE CONTENTIONS OF THE LD. COUNSEL FOR THE ASSESSEE. 4. HAVING HEARD THE RIVAL CONTENTIONS AND HAVING PERUSED THE MATERIAL ON RECORD, WE ARE OF THE CONSIDERED VIEW THAT THE ISSUE IS NOW COVERED IN F AVOUR OF THE ASSESSEE BY THE ORDER DATED 6 TH OCTOBER, OF THIS TRIBUNAL IN THE CASE OF IN THE CASE OF JAI GIRNARI MANAV SEVA, GAU SEVA ASHRAM TRUST IN ITA NO.529/RJT/2014, WHEREIN THE TRIBUNAL HAS, INTER ALIA, OBSERVED AS FOLLOWS : - 4. HEAVING HEARD THE RI VAL CONTENTIONS AND HAVING PERUSED THE MATERIAL ON RECORD, WE ARE OF THE CONSIDERED VIEW THAT THE ISSUE IS NOW COVERED IN FAVOUR OF THE ASSESSEE, IN PRINCIPLE, BY THE JUDGEMENT DATED 25.03.2015 OF HON BLE HIGH COURT OF GUJARAT AT AHMEDABAD IN THE CASE OF C IT VS. TAPAGACHHA SANGH MOTA (TAX APPEAL NOS.915, 916 & 917 OF 2014), WHEREIN THEIR LORDSHIPS HAVE HELD AS FOLLOWS: - 12. FROM THE ORDERS PASSED BY THE COMMISSIONER REFUSING TO GRANT REGISTRATION CERTIFICATE UNDER SECTION 12AA OF THE ACT AND EVEN FROM THE ORDER PASSED BY THE LEARNED TRIBUNAL, IT APPEARS THAT NONE OF THE AUTHORITIES BELOW HAVE CONSIDERED THE ABOVE MATERIAL AND RELEVANT ASPECT WITH RESPECT TO THE SATISFACTION OF THE COMMISSIONER WITH RESPECT TO GENUINENESS OF THE TRUST. IN A GIVEN CASE EVEN IN ABSENCE OF ANY PROVISION IN THE TRUST WITH RESPECT TO DISSOLUTION CLAUSE IF ON FACTS THE TRUST IS FOUND TO BE GENUINE AND/OR GENUINENESS OF THE TRUST IS ESTABLISHED, THE TRUST MAY BE ENTITLED TO REGISTRATION UNDER SECTION 12AA OF THE ACT, HOWEVER SUBJ ECT TO FULFILMENT OF CONDITIONS UNDER SECTION 12AA OF THE ACT I.E. WHEN THE COMMISSIONER IS SATISFIED ABOUT THE GENUINENESS OF THE ACTIVITIES OF THE TRUST OR THE INSTITUTION. AS OBSERVED HEREIN ABOVE, BOTH THE COMMISSIONER AS WELL AS ITA NO . 488 / RJT/201 4 PAGE 3 OF 4 LEARNED TRIBUNAL HAVE NOT ADDRESSED THEMSELVES ON THE AFORESAID RELEVANT ASPECT, WE ARE OF THE OPINION THAT MATTERS ARE REQUIRED TO BE REMITTED BACK TO THE FILE OF THE COMMISSIONER AND REMANDED TO THE LEARNED COMMISSIONER TO CONSIDER THE ISSUE/GRANT OF REGISTRATION CERTIFICATE UNDER SECTION 12AA OF THE ACT AFRESH IN ACCORDANCE WITH LAW AND ON MERITS AND TO CONSIDER THE GENUINENESS OF THE TRUST/INSTITUTION/GENUINENESS OF THE ACTIVITIES OF THE TRUST AFTER GIVING AN OPPORTUNITY TO THE TRUST TO MAKE SUBMISSIONS AND/OR PRODUCE ON RE CORD ANY MATERIAL IN RESPECT OF THEIR CASE THAT THERE IS NO REASON TO DOUBT THE GENUINENESS OF THE ACTIVITIES OF THE TRUST. 13. IN VIEW OF THE ABOVE AND FOR THE REASONS STATED ABOVE, ALL THE APPEALS SUCCEED IN PART. THE IMPUGNED JUDGEMENT AND ORDERS PASSE D IN ITA NO.440/RJT/2013, ITA NO.441/RJT/2013 AND ITA NO.442/RJT/2013 DATED 29.05.2014 AND 30.05.2014 RESPECTIVELY PASSED BY THE LEARNED ITAT AND THE ORDERS PASSED BY COMMISSIONER, JAMNAGAR REJECTING THE REGISTRATION CERTIFICATE UNDER SECTION 12AA OF THE A CT TO THE RESPECTIVE ASSESSEE TRUSTS ARE HEREBY QUASHED AND SET ASIDE AND MATTERS ARE REMITTED TO FILE OF THE COMMISSIONER/APPROPRIATE AUTHORITY TO CONSIDER THE APPLICATIONS OF THE RESPECTIVE ASSESSEE TRUST FOR ISSUANCE OF REGISTRATION CERTIFICATE UNDER/SE CTION 12AA OF THE ACT AFRESH AND IN ACCORDANCE WITH LAW AND ON MERITS AND IN LIGHT OF THE OBSERVATIONS MADE HEREIN ABOVE AND AFTER GIVING AN OPPORTUNITY TO THE RESPONDENT TRUSTS TO PRODUCE ON RECORD ANY MATERIAL IF THEY SO CHOSE, IN SUPPORT OF THE GENUINEN ESS OF THE ACTIVITIES OF THE TRUST. THE AFORESAID EXERCISE SHALL BE COMPLETED WITHIN A PERIOD OF THREE MONTHS FROM THE DATE OF RECEIPT OF THE PRESENT ORDER. IT WILL BE OPEN FOR THE TRUST TO SUBMIT ADDITIONAL MATERIAL, IF ANY, IN SUPPORT OF THEIR CLAIM TH AT SINCE MANY YEAS TRUST IS FILING RETURN OF INCOME AND CLAIMING EXEMPTION UNDER SECTION 12AA OF THE ACT MEANING THEREBY TO ESTABLISH THE GENUINENESS OF THE TRUST AND/OR ITS ACTIVITIES, TO BE PRODUCED WITHIN A PERIOD OF ONE MONTH FROM THE DATE OF RECEIPT O F THE PRESENT ORDER AND THE SAME BE CONSIDERED BY THE APPROPRIATE AUTHORITY/CONCERN COMMISSIONER IN ACCORDANCE WITH LAW AND ON ITS OWN MERITS. WITH THIS, ALL THESE APPEALS ARE ALLOWED TO THE AFORESAID EXTENT. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, T HERE SHALL BE NO ORDER AS TO COSTS. 5. RESPECTFULLY FOLLOWING THE ESTEEMED VIEWS OF THE HON BLE JURISDICTIONAL HIGH COURT, WE REMIT THE MATTER TO THE FILE OF LD. CIT FOR FRESH CONSIDERATION IN THE LIGHT OF DIRECTIONS OF HON BLE HIGH COURT OF GUJARAT AS SET OUT ABOVE. THE SAME WILL APPLY MUTATIS MUTANDIS IN THIS CASE AS WELL. 5. WE SEE NO REASONS TO TAKE ANY OTHER VIEW OF THE MATTER THAN THE VIEW SO TAKEN BY THE TRIBUNAL IN THE CASE OF JAI GIRINARI MANAV SEVA, GAU SEVA SHAMA TRUST IN ITA NO.529/RJT/20 15 VIDE ORDER DATED 6 TH OCTOBER, 2015. RESPECTFULLY FOLLOWING THE ITA NO . 488 / RJT/201 4 PAGE 4 OF 4 ABOVE DECISION OF THE TRIBUNAL, WE REMIT THE MATTER TO THE FILE OF LD . CIT FOR FRESH CONSIDERATION. 6 . IN THE RESULT, A PPEAL IS ALLOWED FOR STATISTICAL PURPOSES. P RONOUNCED IN THE OPEN COURT ON THIS 19 TH DAY OF JANUARY, 2016. SD/ - SD/ - KUL BHARAT PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) AHMEDABAD , THE 19 TH DAY OF JANUARY , 201 6 COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMM ISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT